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AstraZeneca (AZN( and Merck (MRK) announced that the U.S. FDA has granted Orphan Drug Designation for selumetinib, a MEK 1/2 inhibitor, for the treatment of neurofibromatosis type 1. The potential benefit of selumetinib in NF1 is being explored in the U.S. National Cancer Institute-sponsored phase 1/2 SPRINT trial in pediatric patients with symptomatic NF1-related PNs. Phase II trial results are expected later in 2018.

After Teva (TEVA) reported that its Phase 3 registration study evaluating subcutaneously administered reslizumab in a pre-filled syringe did not meet its primary endpoint, Wells Fargo analyst David Maris said he believes this puts Teva at a disadvantage versus peers AstraZeneca (AZN) and GlaxoSmithKline (GSK) at a time when Teva cannot afford more pipeline setbacks. Subcutaneous reslizumab was not a major focus, but the news is still "another disappointment," said Maris, who keeps an Underperform rating on Teva shares.

Canaccord analyst Dewey Steadman said ANI Pharmaceuticals (ANIP) is one of the best positioned names in the emerging generics space. He noted the company has a basket of additional branded tail assets from its AstraZeneca (AZN) acquisitions, additional cash on hand and credit facilities for future transactions, and a solid core business. Steadman reiterated his Buy rating and raised his price target to $77 from $75 on ANI Pharmaceuticals shares.

12/29/17

12/29/17NO CHANGE

On The Fly: Top five analyst actions

Catch up on today's top five analyst actions with this list compiled by The Fly: 1. AstraZeneca (AZN) upgraded to Overweight from Neutral at JPMorgan with analyst James Gordon saying the company's "superior medium-term growth outlook," which is twice the peer average, warrants a 25% sector premium. 2. PriceSmart (PSMT) upgraded to Outperform from Market Perform at IFS Securities. 3. Novo Nordisk (NVO) upgraded to Neutral from Underweight at JPMorgan with analyst Richard Vosser saying he expects "strong" oral semaglutide Phase III newsflow in 2018. 4. Syntel (SYNT) downgraded to Underperform from Market Perform at Wells Fargo with analyst Ed Caso saying he sees the company's "weak" positioning for the ongoing shift in information technology demand from "legacy" low-cost offshore-centric software services to more onshore-necessary "digital" solutions as dragging down its growth and margins. 5. RioCan REIT downgraded to Sector Perform from Outperform at RBC Capital. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.

12/29/17

JPMS

12/29/17UPGRADEJPMSOverweight

AstraZeneca upgraded to Overweight from Neutral at JPMorgan

JPMorgan analyst James Gordon upgraded AstraZeneca to Overweight and raised his price target for the shares to 55 pounds from 48 pounds. The company's "superior medium-term growth outlook," which is twice the peer average, warrants a 25% sector premium, Gordon tells investors in a research note. He believes downside risk around the Mystic trial failure and "overly high base business expectations" have now lessened with consensus earnings forecasts declining 15%. The analyst expects AstraZeneca to return to sales growth in 2018, even without further immuno-oncology trial success. Astra has 10 Phase III readouts, with fairly low expectations across the board, Gordon argues.

MRKMerck

$54.90

(0.00%)

02/14/18

BMOC

02/14/18NO CHANGETarget $65BMOCOutperform

Merck price target lowered to $65 from $70 at BMO Capital

BMO Capital analyst Alex Arfaei lowered his price target on Merck to $65 after the company discontinued its APECS study. The analyst sees this as "another setback that increases Merck's dependence on Keytruda" and contends that the company needs other meaningful drivers. Arfaei keeps his Outperform rating based on his confidence in Keytruda growth and Merck's Immuno-oncology execution.

01/17/18

BMOC

01/17/18NO CHANGETarget $72BMOCOutperform

Merck price target raised to $72 from $68 at BMO Capital

BMO Capital analyst Alex Arfaei raised his price target on Merck to $72 from $68, keeping his Outperform rating following a 6% move higher in the stock price yesterday. The analyst says he remains bullish based on a "meaningful upside for Keytruda" and better performance from supporting drug franchises such as Gardasil. Arfaei warns however that while Keytruda has solidified its lead in non-small cell lung cancer market, it remains the company's only major growth driver while immuno oncology becomes increasingly more competitive.

As previously reported, SunTrust analyst John Boris upgraded Merck to Buy from Hold, stating that he had expected positive data from the Keynote-189 trial but that the positive results on Progression Free Survival and Overall Survival came earlier than expected. This timing should enable Merck to maintain its first-mover advantage in first-line non-squamous Non-Small Cell Lung Cancer, or NSCLC, in the U.S. and file in the EU, Boris tells investors. He raised his price target to $72 from $54 on Merck shares, which are up $4.09, or 7%, to $62.75 in morning trading.